3 credit unions are suing over New York’s debt verdict reduction law

By Jon Hill (April 4, 2022 at 5:56 p.m. EDT) — Three state credit unions are suing a soon-to-enact New York state law that will lower the statutory interest rate on judgments in consumer debt cases from 9% to 2%, a measure that However, aimed at reducing the pandemic-related financial burden on borrowers, it is being challenged as unconstitutional.

The western New York-based credit unions set out their challenge in a class-action lawsuit filed Monday in federal court in Manhattan, asking the court to invalidate the state’s Rate Cut Act S.5724A as a violation of constitutional procedural and property rights.

The trio are also requesting a preliminary…

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